DraftKings Sued in NY over Allegedly Misleading $1K Bonus

The newly filed class action lawsuit alleges that the company's $1,000 Deposit Bonus was misleading and "virtually impossible" to be claimed in full by the average sports bettorImage Source: Shutterstock.com

Class action lawsuits filed against online betting and casino operators are not uncommon. Now, one of the top two betting and gaming companies in the United States, DraftKings, is reportedly facing a new class action lawsuit in New York, a report suggests.

The Lawsuit Seeks to Recover All Funds Lost by DraftKings Customers

The recently filed legal action stems from one of the operator’s promotions, the $1,000 Deposit Bonus. The lawsuit was filed by Nerye Aminovwith the New York State Court, naming DraftKings defendant, NEXT.ioreports. The plaintiff is requesting compensation for all losses he incurred from the promotion.

Moreover, as a class action lawsuit, Aminov is seeking to recover all funds by customers who may have been affectedby what the legal claim alleges was a misleading promotion. Besides the recovery of funds, the lawsuit seeks punitive damages and to secure an injunctionthat would prevent DraftKings from engaging in alleged deceptive advertising practices.

Promotional Conditions in Fine Print, Nearly Impossible, Lawsuit Claims

The legal case alleges that DraftKings failed to properly informnew customers of the requirements of the $1,000 Deposit Bonus. The conditions of the special offer were in fine print, revealing that the $1,000 bonus can be received by customers who deposit $5,000at once and then place wagers worth aminimum of $25,000for 90 days with different company products.

Under those conditions, it was “virtually impossible” for an average sports bettor to access the complete bonus amount, the lawsuit alleges. Additionally, the legal claim argued that despite the complicated conditions, DraftKings extensively promoted its $1,000 Deposit Bonus, engaging with new customers who joined its platform.

“DraftKings’ advertisements did not fairly inform new users that the Deposit Bonus is calculated as 20% of up to $5,000 of the new user’s first deposit. DraftKings failed to fairly disclose that consumer needed to immediately deposit $5,000 and then subsequently bet at least $25,000 to qualify for the $1,000 Deposit Bonus,“

reads the lawsuit filed against DraftKings

Recently, DraftKings announced an important collaboration after joining forces with Shaquille O’Neal, the NBA legend. The deal saw the famous basketball player become a brand ambassador for the leading sportsbook.

More recently, amid concerns about problem gambling, DraftKings announced plans to lay off 101 employees in New Jersey. The unexpected move came after the company decided to close its Atlantic City live dealer studio.